$140 seems a bit pricey for a sleeve replacement and bore&hone, but I've not done any for a while -- was $30 here for sleeve and $30 to bore it, but that was six or seven years ago!.

A burned glow plug can get into the cylinder and raise hell, but that is usually a problem with the filament type -- the bits of the pencil type usually aren't thick enought to batter the piston. If the piston is badly damaged, check very closely for cracks in the head.

Check around, you may be able to find a running 240 engine cheaper than the rebuild -- if you do all the work except machining the block and valves yourself, shouldn't be more than $2000 with new pistons. Not a difficult job, as rebuilds go -- just use new stretch bolts on the flywheel and piston rods.

The pictures won't load for me, so I can't tell you anything else. If there is a palpable ridge at the top of the liners (after you scrape the carbon off), you need to either bore and use oversize pistons or re-sleeve all the bores and re-use the pistons (except #2 -- that one is shot for sure!). Wear limit is 0.002" If you have deep vertical scratches on the sleeve the rings failed or are broken (possibly from trying to start the engine or ether or propane......)

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!